Case Details

Issues

CAFA, Parens Patriae

Filing State

MS

Court

U.S. Court of Appeals for the Fifth Circuit

Year

2013

Citation

Hood v. JP Morgan Chase & Co., No. 13-60686 (5th Cir. Dec. 2, 2013)

Resolution

CAFA removal not appropriate where even if individual consumers are the real parties in interest, their individual claims do not reach the $75,000 threshold for federal claims.

Case Description

The Fifth Circuit first noted that CAFA applies to a “mass action” where the monetary claims of 100 or more persons involve common questions of law or fact. The statute provides “[J]urisdiction shall exist only over those plaintiffs whose claims in a mass action “exceed the sum or value of $75,000 exclusive of interest and costs.” The court assumed, without deciding, that the individual customers are the real parties in interest for the state’s restitution claims. The court held that at least one plaintiff in a mass action under CAFA must satisfy the $75,000 amount in controversy, and the burden of proof of this element is on the defendant. In this case, defendants have made no such showing. Requiring the state to provide proof of individual customers’ claims would “require the State to prove a negative, based on evidence outside of the State’s control, about unknown parties that it expressly denies representing.” The court also held that even if one of the plaintiffs did satisfy the $75,000 amount in controversy, CAFA requires that “jurisdiction shall exist only over those plaintiffs whose claims in a mass action satisfy” the $75,000 requirement.”